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October 30, 2022: Another Up Week Despite Rough Mega Tech Earnings
Last week, the Dow Jones was up 5.7%, its fourth straight weekly gain, S&P 500 was up almost 4%, the Nasdaq was up 2.2%, including a 2.9% Friday move. Mega tech had a rough earnings season, and the five mega-caps were down an average of 12% post earnings. Apple, was exception and rose 5.75% last week, including a 7.6% move on Friday. Mobileye pops more than 37% in IPO after spinning out of Intel. Alphabet posts 6% revenue growth as ad downturn worsens. Microsoft’s 11% revenue growth is slowest in five years. Amazon’s stock tanks on grim holiday forecast. Meta shares drop 19% on weak fourth-quarter forecast and earnings miss and a big tech investor writes to Zuckerberg: Meta’s ‘lost confidence of investors’. Twitter shares to be delisted following Musk takeover. Tesla faces U.S. criminal probe over self-driving claims. Alibaba falls to 6-year low as Chinese President Xi secures 3rd term. VC-funded China-based companies with recent US IPOs down over 90%. Microsoft says more than 20 million people have used Xbox Cloud Gaming, and Xbox Game Pass is profitable as it sees subscription growth slow. TikTok gaming push will be an “enormous” one; post Nov 2 launch. GM is delaying its plan to build 400,000 EVs in North America. Tesla cuts China prices by up to 9% as analysts warn of ‘price war. Shopify shares surged as revenue growth ticks higher. Telus will acquire product development shop WillowTree for US$1.2 billion. Toronto venture funding plunged to a two-year low in third quarter of 2022. While total investment in Toronto during Q3 2022 looked very different from 2021 levels, it was in line with the pre-bull market levels of 2020 (investment totalled roughly between $200 million and $300 million in each quarter of that year). Several local investors have noted this recent venture funding decline is a reversion to the mean and more reflective of a normalized capital deployment cycle than a catastrophic crash.

Deep Dive on Underwater Drone Manufacturers
Recap In Sophic Capital’s Bottoms up for Navies we discussed how key countries are investing in subsea defence to safeguard the worlds waterways. In this fourth report in our series, we highlight companies in the defence and commercial marine technology markets and...

Bottoms Up for Navies
Military Adoption of Unmanned Underwater Vehicles AcceleratingRecap In Sophic Capital’s Russia and China Droning for Sea Dominance report, we discussed how Russia and China were bolstering their marine presence with unmanned underwater vehicles (UUVs). In this third...

Russia and China Droning for Sea Dominance
Recap In Sophic Capital’s Unmanned Underwater Vehicles – The Most Challenging Technologies to Develop report, we illustrated why developing unmanned underwater vehicles (UUV) is more challenging than developing spacecraft. We also stated that implementing UUVs can...